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Form 990 Schedule M

Introduction

Schedule M, "Noncash Contributions," is used by tax-exempt organizations to report non-cash contributions received during the tax year. Understanding Schedule K is crucial for organizations to accurately report their financial activities and maintain compliance with IRS regulations.

In this resource guide, we will learn about the key aspects of Schedule M, from its purpose to filing requirements and commonly asked questions.

Table of Contents

  • What is Schedule M?

What is Schedule M?

Schedule M (Form 990) is used by an organization that files Form 990 to report the types of noncash contributionsreceived during the year by the organization and certain information regarding such contributions.

It also requires reporting of the quantity and the reported financial statement amount of noncash contributions received by type of property.

Who must file Schedule M?

An organization that answered “Yes” to Form 990, Part IV,lines 29 or 30, must complete Schedule M (Form 990) and attach it to Form 990.

Two main scenarios trigger the requirement to file Schedule M:

  1. Aggregate Non-Cash Contributions: If the total value of non-cash contributions received during the tax year exceeds $25,000 on Form 990, Part VIII, line 1g, you must file Schedule M.
  2. Specific Assets: Even with non-cash contributions below the $25,000 threshold, you still need to file Schedule M if your organization receives any of the following contributions in Form 990 Part VIII:
    1. Artwork, historical treasures, or similar valuable assets.
    2. Qualified conservation contributions (land or easements for conservation purposes).

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Schedule M Filing Requirements

Below, we have provided Schedule M filing requirements for each part.

Part I - Types of Property

Part I of Schedule M required information on the different types of non-cash contributions your organization received for the tax year.

Provide information on the non-cash contributions you received and complete the information asked in the respective columns

  • Column (a) - Check if applicable
  • Column (b) - Number of contributions or items contributed
  • Column (c)- Noncash contribution amounts reported on Form 990, Part VIII, line 1g
  • Column (d) - Method of determining noncash contribution amounts

Part II - Supplemental Information

Use this part to provide narrative information required in Part I, column (b), and Part I, lines 30b, 32b, and 33, and whether the organization is reporting in Part I, column (b), the number of contributions, the number of items received, or a combination of both.

Also use Part II to provide other narrative explanations and descriptions, as needed. Identify the specific line number that the response supports. This part can be duplicated in case of space requirements.

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Here’s how your Form 990 return with Schedule M attachment is transmitted to the IRS in 3 simple steps!

  1. Provide Organization Details - Choose the tax year for which you want to file a return, and provide your organization’s details.
  2. Preview the Return - Complete Schedule M and preview the information provided in the return for accuracy before transmitting.
  3. Transmit to the IRS - Transmit Schedule M and your 990 return to the IRS and get the acceptance in just a few hours.

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Commonly Asked Questions

1. What types of non-cash contributions are reported on Schedule M?

Schedule M provides a comprehensive list of reportable non-cash contributions. It includes items like:
  • Inventory
  • Securities (stocks, bonds)
  • Real estate
  • Equipment
  • Vehicles
  • Intangible assets (intellectual property, patents)

2. Do I need to report donated services on Schedule M?

No. Schedule M focuses solely on donated items or assets. Don’t report donations of services or the donated use of facilities, equipment, or materials donated in Schedule M.

3. What qualifies as a noncash contribution for Schedule M?

Noncash contributions include donations of property, goods, or services, such as equipment, supplies, real estate, or professional services, that are received by the organization without the transfer of cash.